ABLE

For Advisors

What is ABLE?

An ABLE account is a tax advantaged savings and investment account that empowers individuals with disabilities to save. For those that receive disability benefits, ABLE allows these individuals to save over the $2,000 asset limit without impacting these benefits. ABLE accounts can be used for everyday expenses and to plan for future financial goals.

Neurodiverse Individuals

Empowering individuals to save without affecting essential benefits.

Parents of Children with Disabilities

Tools to help families save for care, education, and everyday expenses.

Veterans

Support for veterans managing service-connected (or other) disabilities and savings for the future.

Organizations and State Agencies

Custom support for organizations that serve as a financial guardian, conservator, or Representative Payee.

Easy to integrate. Valuable for clients.

Add ABLE expertise to your advisory practice without complexity. Vestwell provides the platform you need to confidently guide clients through ABLE options and integration with their broader financial plans.

Differentiate your practice with inclusive planning.

Adding ABLE expertise to your advisory services isn't just smart — it's strategic. You'll meet the evolving needs of clients and families with disabilities, while deepening trust and standing out as a forward-thinking advisor who serves underserved markets. With Vestwell-managed ABLE accounts, you can confidently guide clients through these complex savings decisions.

What are the benefits of an ABLE account?

ABLE accounts offer people with disabilities a way to invest tax-free for the future, spend on everyday expenses, and still keep the public benefits they rely on every day. A few key benefits of an ABLE account include:

• Tax-free growth and tax-free withdrawals for qualified expenses
• Money in your ABLE account, as well as withdrawals for qualified expenses, do not count as an asset for purposes of federal benefits programs (some SSI exceptions apply)
• Income tax deductions and credits in certain states
• You can contribute up to $20,000 a year - or more if employed
• Anyone can contribute - family, friends, employers, etc.
• Various investment portfolios and savings options
• Prepaid debit card for easy withdrawals and spending
• Funds from a 529 College Savings Account can be rolled over into an ABLE account, tax-free

What is the ABLE Act?

Millions of people with disabilities rely on public benefits and federal programs such as Supplemental Security Income (SSI) and Medicaid for their basic needs, but this assistance can be limiting. The Stephen Beck, Jr. Achieving a Better Life Experience Act, known as the ABLE Act, was passed by Congress in 2014 and allows states to create tax-advantaged savings programs for people with disabilities.

Does having an ABLE account affect eligibility for my client’s federal benefits?

No. When saving with an ABLE account, your clients can keep their federal benefits (SSI, SSDI, Medicaid, SNAP, TANF, HUD Assistance, Section 8, etc.).

Do taxes have to be paid for the account?

No. If the money in the ABLE account is used to pay for qualified expenses, it won’t be counted as income for state or federal taxes.

How is an ABLE account different from a Special Needs Trust or a Pooled Trust?

ABLE accounts, Special Needs Trusts (SNTs), and Pooled Trusts are all financial tools that can help people with disabilities to save money.
Key advantages of ABLE accounts:

• Fewer expenses than setting up a trust - you do not have to hire an attorney to set up an ABLE account.
• The beneficiary owns the funds and can access them for eligible expenses.
• Limited to people diagnosed with a disability that began before the age of 46.
• Earnings from ABLE accounts are tax-free; trusts are subject to taxation.
• Annual contribution limit ($20,000 - or up to $35,650 for certain working beneficiaries).
• Funds can be used for a wide range of expenses.
• Low fees.

Can I open or manage more than one ABLE account?

A person with a disability (the “beneficiary”) can only own one ABLE account at any given time. However, if you act in a support role for people with disabilities, you can manage multiple ABLE accounts for different beneficiaries.

What is considered a “qualified expense”?

Most expenses related to the costs associated with living with a disability qualify as an eligible expense. Some of the most common qualified expenses as defined by the IRS include:

• Living expenses
• Education
• Housing
• Transportation
• Employment, training, and support
• Assistive technology
• Personal support services
• Health, prevention, and wellness
• Funeral and burial costs
• And more.